Recent data indicate significant challenges in Russia’s fuel market, marked by a notable decrease in production and exports. Reports suggest that gasoline production fell by approximately 25% last week compared to the daily average from June of the previous year.
In light of fuel shortages and rising prices, Russian authorities are exploring various strategies to stabilize the market. Sources from Reuters have indicated that one of the discussed measures includes subsidies for imported fuel to help control prices.
According to market sources and LSEG, maritime exports of petroleum products from Russia decreased by about 15% in the first half of June compared to the first half of May. Unplanned maintenance at refineries, following repeated drone attacks, has been cited as a contributing factor to this decline.
Despite these challenges, exports of diesel fuel and gasoil have remained relatively stable. In April, Russia increased maritime shipments of these products by 8% compared to March, totaling approximately 3.25 million tons, with little change observed in May.
Brazil and Turkey continue to be among the largest buyers of Russian diesel fuel.
It is important to note that reports from ISW previously indicated that gasoline shortages and rising prices are affecting an increasing number of regions across Russia. Analysts have documented fuel supply issues in cities such as Saint Petersburg, as well as in Voronezh, Tula, Tver, and other areas, prompting local authorities to respond to supply disruptions and heightened demand.
Overall, various restrictions are currently in place across more than 50 regions in Russia.
Russia's fuel market is facing significant production and export declines, with authorities considering measures to address rising prices and shortages. The situation has led to restrictions in over 50 regions, impacting local supply and demand.